Shelley could skip questions from panel / If secretary of state resigns, he needn't talk, speaker says

John M. Hubbell, Christian Berthelsen, Chronicle Sacramento Bureau

Published 4:00 am, Friday, February 4, 2005

Photo: RICH PEDRONCELLI

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Assembly Speaker Fabian Nunez, D-Los Angeles, talks about proposed legislation introduced by Republican lawmakers that were part of Gov. Arnold Schwarzenegger's package of reform bills, during a Capitol news conference held in Sacramento, Calif., Thursday, Jan. 27, 2005. Earlier Schwarzenegger had said his measures had been sent to the legislature despite Democratic lawmakers remarks that they had not seen anything from the Governor. Nunez said Schwarzenegger's bills had been submitted, but some were delivered in incomplete form and could not be taken up until changes were made and others had not been indentified as Schwarzenegger's measures.(AP Photo/Rich Pedroncelli) less

Assembly Speaker Fabian Nunez, D-Los Angeles, talks about proposed legislation introduced by Republican lawmakers that were part of Gov. Arnold Schwarzenegger's package of reform bills, during a Capitol news ... more

** FILE ** California Secretary of State Kevin Shelley speaks during a news conference in Sacramento, Calif., April 30, 2004. In the latest blow to Shelley, the federal commission that distributes election ... more

Photo: RICH PEDRONCELLI

Shelley could skip questions from panel / If secretary of state resigns, he needn't talk, speaker says

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2005-02-04 04:00:00 PDT Sacramento -- Assembly Speaker Fabian Nuñez said Thursday that embattled Secretary of State Kevin Shelley could avoid testifying before a legislative panel probing possible misconduct in his office by resigning, for the first time raising the possibility that Shelley could sidestep a potentially grueling public inquest.

Nuñez also said he has spoken with Gov. Arnold Schwarzenegger's administration about possible candidates to replace Shelley if he steps down.

"There have been some conversations between several people about who would be a replacement," Nuñez said. "There is no question that the governor's office is entertaining the idea of a replacement."

Shelley's planned appearance before the state Joint Legislative Audit Committee -- which is investigating his office's use of federal voting funds -- would place the San Francisco Democrat into a public arena facing questions under oath from lawmakers of both parties as state and federal investigations into his actions continue.

"If Mr. Shelley were to resign, it would be ridiculous of us to force him into a hearing and get testimony from him, particularly when you have other investigations in place," Nuñez, a Los Angeles Democrat, said. "You have at least two federal investigations, then you have the attorney general's investigation, and I don't think we want to impede the ability of those investigations to follow the process that they need to follow."

The legislative committee's second hearing, originally scheduled to be held Thursday, is set for Feb. 22. Shelley aides have said in the past that the secretary intends to testify at the hearing, but Shelley spokesman Sam Singer declined comment Thursday.

The speaker's comments, made at a briefing for reporters in his office, further indicated that party leaders are actively pondering exit strategies for Shelley and discussing possible replacements to recommend to the governor.

"Kevin has a lot of friends who want to be helpful to him, and there's some folks that I presume are close to him are saying, 'You should resign, let's help you to the next step,' " Nuñez said. "But my understanding is on a personal level, he's up to his teeth with legal bills and personal issues that are suffocating him politically. I wouldn't want to see anybody go though something like that."

'Very good question'

While some Democrats, including state Senate Majority Leader Gloria Romero, D-Los Angeles, have suggested that it would be better for the party if Shelley resigned, neither Nuñez nor Senate President Pro Tem Don Perata, D- Oakland, has done so. But Nuñez, asked if Shelley remained in good standing to serve as the state's chief elections officer, said: "I don't know if he's still effective. But I think that's a very good question."

Nuñez, who said he had spoken to Shelley over the weekend, said he had discussed possible successors for Shelley with Schwarzenegger administration officials.

If Shelley resigns, Schwarzenegger would pick a new secretary designee, likely a Republican, but he or she would need approval by a majority vote of both legislative houses, which are controlled by Democrats.

Governor's retort

Late Thursday, Schwarzenegger spokeswoman Margita Thompson released a statement that chided Nuñez for his comments.

"We will not speculate about a vacancy," Thompson's statement read. "Members of the Legislature are not spokespeople for the governor."

Nuñez's indication that Shelley could sidestep a public grilling with a resignation fell flat with Assembly Minority Leader Kevin McCarthy, R- Bakersfield.

"I would never agree to that," McCarthy said. "I think he needs to testify whether he resigns or not, and the hearings need to continue. I've played Monopoly before, but I've never given anyone a get-out-of-jail-free card."

Up to Democrats

With Democrats in power in the Legislature, however, Republicans lack subpoena power on committees, leaving it to the majority party alone to compel or excuse Shelley from testifying.

Whether Shelley will come before the Joint Legislative Audit Committee has proved pivotal as investigations into various aspects of his conduct have mounted.

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Close scrutiny of Shelley started when The Chronicle reported in August that part of a tax-funded grant appeared to have been illegally diverted to Shelley's 2002 campaign account. Shelley said he did not know that the funds, which he helped secure while serving in the Assembly, were tainted and returned the money to the state's general fund. A federal grand jury is investigating the campaign-fund transactions.

The Joint Legislative Audit Committee is looking into the findings of a state audit that concluded the secretary's office mishandled federal Help America Vote Act funds, using some of it to pay for activities such as writing speeches for Shelley. Shelley also is facing investigations into alleged abusive treatment of office workers.

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